There's still a long way to go before consumer protection is sufficient and business attitudes serious enough to develop a thriving market on the internet.

These are the findings of a new report from the European Consumer Law Group on consumer transactions on the internet, which states that many consumers lack confidence in this new technology.

The report deals with four important issues relating to the internet:

contract conclusion;

payment;

privacy; and

jurisdiction/applicable law.

"Without a good legal framework and a high level of consumer protection in these areas, consumers will not use the internet as a shopping channel," the report concludes.

Because a contract concluded online differs from a contract concluded face-to-face, it is necessary to regulate the new contractual situation with a new legal framework, the report states.

In November 1998, the European Commission adopted a proposal for a directive on certain legal aspects on electronic commerce in the internal market. An amended proposal was put forward in September of the following year.

The latest report points out that further amendments are necessary to give consumers all the information they need.

It suggests the trader should be obliged to give the service provider's exact address and a description of the main characteristics of the service or product.

The date on which the currency calculation will be carried out should also be displayed, along with the time at which the contract is concluded.

During the contract process, the report says that the consumer must be able to review all the details before sending the final order and should receive a confirmation of the final order.

In order to establish consumer confidence and to protect the financial interests of consumers in cases where fraud is linked to the use of credit cards and debit cards, the report recommends that technological standards should allow an easy charge-back system that would be in favour of consumers.

The European Consumer Law Group suggests a charge-back rule be introduced in European Union law, saying that money should be transferred back to consumers' accounts on their demand and without questions being asked by the card companies.

A bill with such a provision passed the parliament in Norway in May 1999.

"The effect of this is that the burden of suing will be placed on the professional party. Responsibility for starting an investigation will be placed on the credit card company, the only party who has the knowledge and resources to start an investigation."